Yes, hardware cost reduces with time – here are the reasons

On the economy, it’s the rule whenever a product launches then its cost/price will increase or decrease as per the demand. The IT sector was always booming with the attraction of new inventions & the management becomes much easier than ever with the computers.

Hardware costs with time
Hardware costs with time

Then what actually happens that reduces Infrastructure cost? Here are some of the major reasons:

  • Overwhelming demand and supply.
  • Competition among all the manufacturers, vendors & different companies.
  • Daily technology update & downgrade.
  • Ease to the customer to buy the product.

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Considering between virtualization and cloud, which is best?

Cloud or virtualization, which is right for my business? These questions always parts of consideration while adopting a solution form them. Even though many IT Managers or CIO are a little skeptical about the difference between both, because Cloud is more like Virtualization’s extended version. But if you have 100% virtualized infrastructure it doesn’t mean that you are having a Private Cloud infrastructure. Both technologies are almost similar and not interchangeable. But, the significant difference between both can affect your business decision.
Virtualization vs Cloud:
What is Virtualization?
Virtualization is a layer to create different and dedicated resources on the same physical infrastructure. Through virtualization you can run multiple software applications and operating systems at the same time on same hardware. You require a hypervisor above the physical infrastructure to create, run and manage different Virtual Machines. You can configure each VM as per your requirement of application, OS, environment, physical resources etc. There are many big players that provide hypervisor like VMware, Microsoft, Oracle, HP etc.
Virtualization makes servers, storage, workstations and other systems independent from physical infrastructure. Virtualization is the core fundamental that powers the cloud computing.
What is Cloud Computing?
Cloud the buzzword which gives more flexibility of computing in other words you can call Cloud Computing as “a type of Internet-based computing”. But also require hardware, software, hypervisor etc. while building.
So, how’s virtualization different from cloud?
Virtualization is the base of cloud computing and helps to deliver the value for cloud computing. Biggest confusion occurs when virtualization and cloud work together to provide different services, mostly the case in Private Cloud infrastructure.

Through virtualization you can enable the Cloud Computing if you are offering 100% virtualization infrastructure with:

  • On demand services
  • Broad network access
  • Resource pooling
  • Rapid elasticity
  • Pay-per-use model

With all these 5 elements and 100% virtualization your organisation achieve the Private Cloud infrastructure. Some of the expert companies also mentions that cloud computing can also achieve without virtualization with the help of certain hardware, operating system and even application cluster can offer cloud services but those are quite complicated and costly. Even though require a lot of time consuming work just for limited set of features.

How do you know if your business needs Virtualization Model or Cloud Model?
With virtualization companies can maintain and secure their infrastructure because of following benefits:
  • Maximize resources:
    Virtualization saves a lot of hardware resources and you can get more value from a single server. Maximum time with traditional way of computing most of the servers are under-utilised but with virtualization allows to use the 100% power of them.

  • Multiple systems:
    Virtualization enables you to create different VMs to run multiple types of applications and multiple operating systems for those applications on the same physical hardware.

  • IT budget integration:
    With virtualization administration and maintenance of resources is easy for your infrastructure and saves a lot for IT operations.

So companies that need greater control for integration and security & financially work more in capital expenditure model should adopt Virtualization model.

Whereas, those companies should adopt cloud, which work on operational expenditure model and have less IT staff and very few security concerns should. Cloud basically leverage you with:

  • Outsourced IT:
    The daily IT administration tasks, care or maintenance, and support system move away from the company to service provider. This will free up your internal IT resources and advances your business quickly.

  • Quick Setup:
    A startup that adopts cloud from start their work become easy as cloud services is quick and easy. Servers, appliances and application licenses go away when you such kind of service. Even though no need to take care of updates to do the compatibility. Every issue is now on the head of service provider.

  • Pay-per-use:
    All the SaaS (Software as a Service) based application available today with this model of paying of what you actually use. You can customize the services and pay the service provider of what and how much quantity you are using, no extra cost.

  • Scalability:
    By using cloud you have the facility to use it from anywhere and it off loads a whole big amount of IT capacity to the service provider. This increases the scalability of your working environment.